Cash flow is one of the most important aspects of running a small business during its infancy. This can be used to market, pay staff, or to pay the costs of products to manufacturers. A lack of cash flow can lead to a business’ growth coming to a halt which makes it necessary for management at a small business to save money where possible. The saving of this money should not inhibit the growth of the company as this would be counterproductive. Certain areas are not where a business wants to try to save money as they are essential to healthy growth of the company. The following are areas a small business should avoid trying to skimp on expenses during the infancy of the business.
Equipment That Directly Impacts Quality of Work
Getting a basic laptop for the receptionist at a business does not impact their quality of work at all. Having a cheap monitor for a web designer on the other hand could get in the way of the designer doing their job to the best of their ability. Save money on equipment that does not matter in terms of work quality as getting new technology like laptops for all employees could be extremely expensive for a business of any size. Used technology can be a great option as it helps save money and many times comes with some kind of warranty. It seems like people always want the latest model of a laptop or phone without researching whether it is better to use than the previous model. Bulk purchases also an help a company save money as a vendor might want to maximize money earned rather than just focus on profit margins.
The Company Website
The company website is the first impression that many people will have of your small business. Designing a great website is not nearly as expensive as it used to be and there are even templates that can help the least tech savvy person design a respectable site. For small businesses that expect large amounts of traffic picking expert web hosting support like that offered by IP Geeks could not be more important. Digitally marketing your business should be done after the company site is perfected. This will not only help expand the brand’s image and reputation but can also help in terms of search engine rankings. A great digital marketing strategy can allow a small business to grow immensely in a relatively short amount of time.
Developing A Thorough Hiring Process
A small business is impacted greatly by every hire that they make as each person plays a much larger role when compared to a large corporation with hundreds of employees. A constant revolving door of new hires can kill cash flow as it takes people time to become profitable and learn the production processes at a new job. The hiring process should be thorough which includes a practical part of the interview. Asking someone that is interviewing for a media outreach position to write out a pitch they would send to an online publisher is a great example. People tend to throw around the words expert and guru when they are far from proficient in a particular area.
Customer Relationships
Current customer relationships need to be invested in through going to meet them in person. Sending gifts during holidays or birthdays is also important as you want to build the strongest rapport possible. Getting a client to sign a long term contract can be the perfect opportunity for a company to focus on growth due to the knowledge of where the month’s money will be coming from. A CRM also should be implemented as a valued client should not have to rehash a specific topic they have already covered in an email or on a conference call. When growing make sure to keep an emphasis on customer relationships and also to budget in gifts as it can really make a difference.
Conferences Or Trade Shows
A small business in its infancy is going to want to earn their legitimacy through attending industry events. This is a large concentration of people in one industry so investing in a booth and bringing staff can expand brand image in the business niche. Mutually beneficial business relationships can be garnered at these events as it is far easier to build rapport in person than over the phone or via email. The most important part of a trade show can be after it is over and the small business follows up with the contacts that they have made there. Writing notes on the back of business cards is essential about conversations that were had and details of these can help remind a potential client of who you are. Names do not always strike a chord as people meet dozens of others at conferences but unique conversations can jog the memory of the person.
Skimping on certain areas of a small business can set the business up for failure. Understand what is important in running your business and what money can be saved on. Grow your small business but take care of important details during its infancy!